Goals of Ownership

• Desire to sell majority ownership position in company after achieving strong growth and profitability for estate planning purposes – goal of diversifying net worth as vast majority was tied up in company
• Find acquirer or partner to provide capital to facilitate growth into new products and markets and fund prospective acquisition opportunities
• Create opportunity for senior (non-owner) employees to obtain ownership stake
• Maintain meaningful ownership stake in business

Situation

• Company had been repeatedly approached by potential acquirers and pursued several opportunities on its own, but was unable to negotiate transaction that satisfied owner’s expectations.
• Experiences led owner to seek assistance from experienced investment banking firm – owner subsequently interviewed three firms and selected De NES Partners to lead process that would best benefit owner and executive management team

Transaction

• 19 potential strategic and financial partners made preliminary offers; 6 groups selected to meet with ownership
• Completed deal with Private Equity Firm with over $1 billion in capital under management – assured ample capital and resources to accelerate growth in current markets, including the independent retail pharmacy channel, as well as to expand into new markets
• Post-transaction, owner retained a meaningful ownership stake
• Owner removed from all personal guarantees from bank and credit lines
• Senior executives received opportunity to personally invest in transaction
• Private Equity Firm created an additional stock option pool for senior employees (including stock options available to recruit new executives)